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Note 9 - Income Taxes
3 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
9
- I
ncome Taxes
 
The
December 2017
Tax Cuts and Jobs Act (“Tax Act”) reduced the maximum corporate tax rate from
35%
to
21%
effective
January 1, 2018. 
The Company has completed its review of the Tax Act.  The impact to its financial statements is as follows:  (i) current income tax expense or benefit is calculated on a blended rate of
24.28%
pursuant to IRC Section
15,
(ii) deferred tax expense includes a discrete net tax benefit of approximately
$16
million resulting from a revaluation of deferred tax assets and liabilities to the expected tax rate that will be applied when temporary differences are expected to reverse, (iii) items that are expected to reverse during fiscal
2018
are valued at the blended rate of
24.28%
while temporary differences that will reverse after fiscal
2018
are valued at
21%,
and (iv) approximately
$20
million of the revaluation of deferred taxes relates to items that were initially recorded as accumulated other comprehensive income (“AOCI”).  This revaluation is recorded as a component of income tax expense or benefit in continuing operations. 
 
For the
three
months ended
December 31, 2017,
the Company recorded an income tax benefit of
$16,850,000
on pretax loss of
$2,111,000.
  The income tax benefit was the result of applying the effective tax rate anticipated for fiscal
2018
to pretax loss for the
three
-month period ended
December 31, 2017.  
The effective tax rate (before the discrete item discussed above) was greater than the statutory rate primarily due to the dividends received deduction which increases the loss for tax purposes.  On pretax loss of
$1,781,000
for the
three
months ended
December 31, 2016,
the Company recorded an income tax benefit of
$310,000
which was the net result of applying the effective tax rate anticipated for fiscal
2017
to pretax loss for the
three
months ended
December 31, 2016.  
The effective tax rate was greater than the statutory rate mainly resulting from the dividends received deduction.  The Company’s effective tax rate was
798%
and
17%
for the
three
months ended
December 31, 2017
and
2016,
respectively. 
 
The Company files consolidated federal income tax returns in the United States and with various state jurisdictions and is
no
longer subject to examinations for fiscal years before fiscal
2015
with regard to federal income taxes and fiscal
2013
for state income taxes